After reading the information that was released today on engadget and gizmodo and after talking to at&t customer service i have figured out how plans and pricing are going to work

New Customers (People joining At&t on July 11th):

You are going to pay the $199/299 price points.

Current At&t Customers

You have an existing contract ?[/SIZE]
For those of you who bought a subsidized phone either when you joined At&t, or when you were eligible for an upgrade, you will pay $399/499 for the iphone.
This is assuming you still have time remaining left on your contract. ie you are not able to upgrade your crappy phone for the 'cheap' prices

Note: Your current contract is deleted and you have brand new 2 year contract. Note: The cutoff is 20 months so if you have had your current crappy phone for 20 months you follow under the below category.

You are able to upgrade?
If you are able to upgrade your current phone and buy a new one with the 'cheap' prices you are able to buy the iphone for the $199/299 price points. You fall under this category if your contract is expired and you are free to leave At&t whenever you want.

You haz oldz iphone?
You will be able to upgrade to the iphone 3g for the $199/299 price points

You hate At&t but love the iphone?
You are able to buy the iphone for a no commitment price of $599/699
However you cannot buy it at launch. You have to wait a while
You will not be tied to At&t. Although At&t is the only cellular provider to use 3g.

Note(ya another one): You will have to also pay an $18 upgrade fee when you buy the iphone

Then I've had THREE different CSR's, two over the phone, and one in person flat out LIE to me. All have told me that I can, in fact, get the 3G at the $199/$299 price. It's great to see humility displayed...

All that said...there's NO WAY I'm going to upgrade. The new plan prices are RIDICULOUS! It would cost me $15 more a month just for what I've got now only with 3G speed. I have the 900 minute plan. $59.99 for the plan + $20 for data and $10 for 1500 SMS. It would cost the same for the plan and then add $30 for the 3G data and $15 for the SMS! Totally ridiculous. I'll be sticking with my "slow" 2.5G phone.

Then I've had THREE different CSR's, two over the phone, and one in person flat out LIE to me. All have told me that I can, in fact, get the 3G at the $199/$299 price. It's great to see humility displayed...

All that said...there's NO WAY I'm going to upgrade. The new plan prices are RIDICULOUS! It would cost me $15 more a month just for what I've got now only with 3G speed. I have the 900 minute plan. $59.99 for the plan + $20 for data and $10 for 1500 SMS. It would cost the same for the plan and then add $30 for the 3G data and $15 for the SMS! Totally ridiculous. I'll be sticking with my "slow" 2.5G phone.

o thats my bad. i didnt see that you said you have the old iphone. i even say that in my post.

Their is way to much confusion with this pricing crap, what stopping someone from going on ebay and buying a broken iphone activating through att and getting the new phone at the discounted pricing even if they are not upgrade eligible.

Their is way to much confusion with this pricing crap, what stopping someone from going on ebay and buying a broken iphone activating through att and getting the new phone at the discounted pricing even if they are not upgrade eligible.

Probably nothing, but I believe the 1st gen phone would need to be activated prior to the release of the 3g in order for that to work.

Otherwise once I upgrade to the 3G, I can give my 1st gen to someone have them activate it and then they can get a new one at 199/299. Then thye could give the first gen to another person and they could get a 3g.....and down the line it goes.

So, if you activate a first gen iphone today or Thursday, your good, after that I don't think it will work.

So im 6 months into my plan, current iphone 1st gen owner. The price doesnt really matter that much to me, $199/299 or $399/$499...but would i be able to buy the 3G in any way without signing another 2 year contract?

So im 6 months into my plan, current iphone 1st gen owner. The price doesnt really matter that much to me, $199/299 or $399/$499...but would i be able to buy the 3G in any way without signing another 2 year contract?

I believe you could. I think it falls under the "upgrade" category because Poseidon79 said you could buy a 3G at any time if you already have a first gen iPhone.